Is it time for your child to have a checking account?

Maturity and responsibility

As the parent, you’ll be the best gauge of your child’s maturity level and ability to manage money reliably. Start by considering their track record in handling other responsibilities. If they consistently demonstrate responsibility with chores, homework, and other tasks, it may be time to consider a checking account. You’ll also want to look at their ability to make wise spending decisions, but they’ll have your guidance, of course. We have tools and resources available, too, so you won’t be leaving them in the financial wild!

Financial education

You’ll want to ensure your child has a basic understanding of money, including concepts like budgeting, saving, and responsible spending. It’s also helpful if they understand how checking accounts work. They may already have a savings account, so it could be just a matter of explaining the difference between the two. If you’ve been teaching them about basic money management, perhaps as part of the allowance process, this will be a natural transition.

Income source

Simplifying money management is an essential aspect of using a checking account. Opening one is especially practical if your kid has a source of income, such as an allowance, a part-time job, or even an income stream/trickle from odd jobs — mowing and pet-sitting cash can add up, and it’s easier not to spend thoughtlessly if it’s contained in one place. Regular gifts would necessitate having a place to stash their cash beyond a savings account, too, in a place that provides more of a hands-on learning opportunity than a savings account. Together, you can make decisions about allocating money for savings and checking, as they both have their place. Plus, mobile deposits of a paycheck (or birthday check) can easily be made into a checking account.

School and extracurricular activities

As your child gets older, chances are they are going to be involved in school and extracurricular activities, which can require financial transactions. From school supplies to sports fees, a checking account can be a safe and convenient way to wrangle these obligations. With a debit card that you’ve placed controls on (more about that in a minute), school events are in the bag.

Financial goals

If your child has specific financial goals — such as saving for a major purchase like a new scooter, video game, or drone — opening a checking account can be a great way to get them there while presenting a hands-on learning opportunity, since checking accounts require more active money management than a savings account would.

Age and legal requirements

Generally, youth bank accounts are available for young people ages 25 and under; however, if your child is under 18, you will also be required to be on the account as a joint owner. (Even if your kid is a little older, it still may not be a bad idea to co-own the account as they get the hang of using it!) These youth bank accounts, such as UBT’s Simply Free Student checking account, typically offer features and benefits designed with younger spenders in mind. 

Parental involvement and financial training wheels

After your child opens a checking account, you’ll want to provide guidance and supervision. Regular review of their account transactions is easy with your bank’s online banking tools (like UBTgo!) and provides another opportunity for you to show them how to monitor their balance and avoid overdraft fees. 

Text alerts are another tool in the toolbox, and a good app offers options for account and transaction alerts. AT UBT, these text alerts can be set to serve as a notification of a low or pre-determined balance and key account activities, allowing the freedom your child needs while still giving you the ability to be aware of what is going on with the account.

We can only speak to UBT here, but you can also set up alerts for debit card actions, too. If you and your child determine that a debit card should be part of their account package, card alerts can be set up to notify you whenever the card is used, or at whatever dollar threshold you determine is notification-worthy.

What’s more, UBTgo’s debit card controls allow you to enable controls on the card to limit dollar amount or even types of purchases and establishments. The two of you can decide their spending limits and if any categories are off-limits altogether. You may decide to set controls within UBTgo to limit debit card spending at the convenience store, the app store, or whatever is tempting, or even block entire merchant categories completely to remove temptation and make it easier to move toward their financial (or purchasing) goals.

We can help

Opening a checking account for your child is just one step in their financial education, but it’s an important one, and only you and your child know when it’s the right time. If we can get you started, answer questions, or provide more resources, your friends at UBT are always ready to help! Stop in to your nearest UBT branch or simply click here to open your account online today.